Gadaffi defends Billy’s loan

Press, 11 August 1980, Page 6

Gadaffi defends Billy’s loan

NZPA Tripoli, Libya The Libyan leader, Colonel Muammar Gadaffi, has defended his nation’s relationship with Billy Carter and said the $U5220,000 loan - to the American President’s brother was related to business transactions carried out during two visits, in 1978 and 1979. :In a two-hour interview, Colonel Gadaffi said that the White House had shown “great .concern” in mending relations over the last six months through the Libyan Embassy in Washington, but Billy Carter had played nd role in this dialogue. These contacts,: Colonel Gadaffi said, were a followup to a promise, relayed to him in December, that President Carter, if re-elected, would make Middle ; East policy changes, in favour of the Palestinians. The reported assurances Colonel Gadaffi mentioned came shortly after Billy Carter arranged a meeting im : Washington between Libya’s representative, Ali Houderi and Zbigniew Brzezinski, President Carter’s National Security Adviser, to seek Libyan help in freeing hostages held by Iran.. • “Our representative in Washington, Mr Houderi, has initiated contacts with :Mr Carter and Mr Brzezinski and has been in touch with other American officials, calling on them personally or by telephone, which, of course, is per- | fectly natural,” the Libyan leader, who speaks English, 'said.

In Washington, Jody Powell, the White House press secretary said no assurances had been given to Libyan officials that President Carter would adopt a more friendly. attitude toward: the Palestinians. . “No such message has been conveyed, directly or indirectly,-by anyone at the White House,” Mr Powell said, adding that American policy toward Libya “is affected by the behaviour and actions of the Libyan Government and not by the timing of the United States elections.” United States relations with Libya have been strained in recent years, and State Department officials have depicted the Libyan Government as radical and unorthodox, a .- sponsor of terrorism, and extremist in its opposition to Israel. However, the United States has. tried to. maintain the best possible relations with Libya because, of its strategic location on the southern shore of the Mediterranean and because of. the imports of Libyan oil. America gets about 10 per cent of its imported oil from Libya. The Libyan leader broke into laughter during the interview, appearing to enjoy Libya’s attempt to dabble in American politics and claiming, with a touch of pride, that Libya had managed to accumulate influence at the highest ' American policymaking levels. He was asked about an allegation last week by Ahmad Tabib, who has helped arrange Billy Carter’s visits tol

Libya, that Billy Carter’s group had taken a valuable gift, estimated to be worth as much as $US5O,Of>O for President Carter.

"I have no knowledge of gifts, ’ financial assistance, or loans because I don’t’ really get involved in these ordinary matters.” - He said it was not a big thing. “Quite the contrary, it is considered part of our obligations as hosts and part of our traditions. It is quite proper to give, someone a present for his relatives, for his family.” The Libyan leader said he did not meet Billy Carter on his two visits because of the pressure of official business, but noted he would be glad to meet the President’s brother if he came again. Colonel Gadaffi portrayed the relationship with Billy Carter as nothing out of the saying he had received . American delegations of. blacks, academics, students,. and' ! Americans bf Arab descent. He defended the loani '

“The .money is not stolen,” he said. “It is not a bribe. It is purely a. commercial' transaction, a business affair, or a loan.” .

When - asked which of these terms best described the money, he said: “Of course, it is a loan and it will be repaid. It. is a loan related to business. Is it forbidden to do business with Americans? We have American oil companies here that are doing business all the time — why not question them? American banks are <

filled with Libyan dollar deposits on loans. Why not put them on trial, too? Why only Billy Carter? Why are they hounding Billy Carter?” When asked whether Billy Carter’s business deals involved oil purchases, Colonel Gadaffi said: “Maybe, probably. All the details on this are with the Foreign Relations Office.”

He said questions regarding the repayment of the loan could be directed to that office, which is headed by Ahmad Shahati, who is Libya’s foreign-affairs chief. When asked whether Billy Carter had been expected to assist in the delivery of eight Cl3O planes paid for by Libya, but blocked by the United States, Colonel Gadaffi said:

“No, we don’t really need them. We have bought planes elsewhere, as everyone knows. What we want is our money back with , interest.” He said the storm over Billy Carter’s Libyan connections was the work of President Carter’s political opponents and of Zionist groups who would like to see him defeated. “They want to turn this whole thing into a Water-gate-like affair to deprive him of a chance for a second term,” the Libyan leader said.

The effort, in his view, was motivated by the knowledge of the pro-Israeli lobby that President Carter, if reelected, “could, as he promised, bring a change in American policies in favour of the Palestinian people.”